Here’s another good KB article we published today on SCVMM 2008. This one describes an issue that may generate a couple different errors when trying to do a P2V of Windows Server 2003 (32-bit or 64-bit):

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Symptoms

When using System Center Virtual Machine Manager 2008 (SCVMM), a Physical to Virtual (P2V) conversion of Windows Server 2003 x86 or x64 fails with one of a few possible errors. Two common errors are 'An I/O error occurred' error 0x80131516, and 'required files are missing' error (13257).

Recommended Action Copy the file SP2.CAB to "C:\Program Files\Microsoft System Center Virtual Machine Manager 2008 R2\Patch Import" on the Virtual Machine Manager server, run the Add-Patch cmdlet to add the required files to the Virtual Machine Manager patch cache, and then try the operation again. The file SP2.CAB is located either at %WINDIR%\Driver Cache\i386 on <ServerName>, or on the Microsoft(R) Windows(R) Server 2003, Standard Edition (ENU, i386) installation media.n/ If SP2.CAB is not available, locate dc21x4.sys (Version: 5.5.5.0) on the installation media, copy the file to "C:\Program Files\Microsoft System Center Virtual Machine Manager 2008 R2\Patch Import", and then run the Add-Patch cmdlet to add the required files to the Virtual Machine Manager patch cache.

Cause

Resolution

Create a file named 'vmmservice.exe.config' and place it in the same directory as vmmservice.exe, '%SYSTEMDRIVE%\Program Files\Microsoft System Center Virtual Machine Manager 2008 R2\Bin.' Place the information below in the file and nothing else. Restart the VMM Service and try the Add-Patch command contained in the error again.

More Information

Many articles similar to this state to simply remove 'vmmservice.exe.config' if found in the same directory as vmmservice.exe, '%SYSTEMDRIVE%\Program Files\Microsoft System Center Virtual Machine Manager 2008 R2\Bin.' This is not enough if garbage collection has already been set. The resolution above reverses the 'gcServer enabled' setting from what may be 'true' to 'false.'

Garbage collection is required for SCVMM in some situations when there are over 150 Hosts. For more information see the articles below.